|March 13, 2004, Berlin – Today, the World Travel
& Tourism Council (WTTC) presented the results of its economic and
policy research on the Montenegro Travel & Tourism economy at ITB Berlin
to Predrag Nenezic, Minister of Tourism, Republic of Montenegro and the
Republic’s Travel & Tourism community.
The research contained economic projections for the growth of Travel
& Tourism in Montenegro and a series of policy recommendations intended
to maximize the potential of Travel & Tourism to the Republic’s economy
and tap its position as a leading catalyst for economic development and
According to 2004 Tourism Satellite Accounting research released this
week by WTTC at the London Stock Exchange, Montenegro at 10.3% real growth
is expected to be the fastest growing Travel & Tourism economy (Total
Travel & Tourism Demand) in the world, and WTTC believes that Montenegro
is well positioned to capitalize on this opportunity to sustain its Travel
& Tourism development.
At the ITB event Jean-Claude Baumgarten, WTTC’s President, said,
“I applaud enthusiastically Montenegro’s recent Master Planning exercise
and the recent recognition by the Republic’s leadership of Travel &
Tourism’s critical role in developing the economy and creating jobs across
the broader economy. However, there is still an enormous amount to
be done if Montenegro is to fully exploit the extraordinary growth we predict
for the Republic. Critical focus should be placed on attracting foreign
investors to expand and renovate the Republic’s tourism infrastructure,
particularly hotel supply, as well as increasing the transparency in the
privatization process, the rapid resolution of land ownership issues and
the removal of red tape. Following these efforts we expect Montenegro
Travel & Tourism will achieve even greater returns for their economy.”
In Montenegro for 2004, WTTC is forecasting:
Demand: Encompassing all components of Travel & Tourism consumption,
investment, government spending and exports to grow 8.2% (real terms) and
total EUR322.6 million (US$ 374.2 million) in 2004. The ten-year
annualized growth (2005-2014) forecast is 10.3% per annum, ranking Montenegro
the number one fastest growing Travel & Tourism market in the world
out of 174 countries covered by WTTC’s 2004 research.
Visitor Exports: Spending by inbound international visitors, the
largest component of Montenegro’s Travel & Tourism demand, is expected
to total EUR173.3 million, or US$201.1 million in 2004, a gain of 10.4%
on 2003 results. This level represents 28.9% of total Montenegro
Gross Domestic Product (GDP): Travel & Tourism’s contribution
to the Montenegro economy is illustrated by the direct industry impact
of 8.1% of total GDP and the combined direct and indirect impact of the
Travel & Tourism economy expected to total 14.8% in 2004.
In order for Montenegro to realize its potential in Travel & Tourism,
WTTC’s principal policy recommendations were as follows:
Employment: The Montenegro Travel & Tourism industry is expected
to produce 500 new jobs in 2004 over its 2003 level to total 12,400 jobs
or 8.1% of total employment. The broader perspective of the Travel
& Tourism economy (direct and indirect), which includes the spillover
employment associated with industry capital investment and government spending,
is expected to create nearly 600 new jobs (590) for the Republic’s economy
for a total of 22,700 jobs dependent on Travel & Tourism or 14.9% of
Increase the responsibility of the Ministry of Tourism, giving it direct
access to the highest levels of government.
Encourage greater market and product diversification in order to reduce
seasonality and to avoid over-dependence on mass-tourism.
Establish a National Convention Bureau (NCB) to manage of all MICE business
Upgrade marketing and promotions to match prevailing competitive approaches,
and ensure that the restructured National Tourism Organization is effective
as a public-private sector partnership.
Anticipate future investment needs by introducing further incentive schemes
for investment from the private sector.
Convene an annual National Tourism Congress, bringing together all Travel
& Tourism stakeholders, to discuss challenges and opportunities for
Establish public-private sector liaison groups to plan ahead for the future
HR development needs of the industry.
Continue to privatize state-owned tourism enterprises, extending privatization
from hotels to other sectors of the industry, including transport.
Increase transparency in the privatization process and ensure that future
efforts are undertaken in close co-operation with the Ministry of Tourism.
Resolve land ownership issues between the state, private landowners and
Reduce red tape and establish a stable legal framework, providing protection
of investments for potential investors.
Set up a tourism investment facilitation agency, linked to the Ministry
of Tourism, to act as a one-stop shop for potential investors.
Invest in the upgrading of Bar to improve ferry terminal services and to
provide international standard cruise facilities and marinas.
Introduce special incentives for the rapid modernization of Montenegro’s
hotel accommodation infrastructure.
Improve land-use planning and protection, guarding against illegal, uncontrolled
real-estate development that poses a threat to the image and quality of
The WTTC Research for Montenegro is the latest in a series of research
produced by the World Travel & Tourism Council using standard’s developed
by the United Nations Statistics Commission (called "Tourism Satellite
Accounting") and a detailed independent policy assessment by leading Travel
& Tourism analysts. Research on the Report for Montenegro began
in the Fall of 2003.
The World Travel & Tourism Council (WTTC) is the forum for global
business leaders comprising the presidents, chairs and CEOs of 100 of the
world's foremost companies.